Press Release

ST. PETERSBURG, Fla. (July 11, 2010) – About 1,500 low-income customers in St. Petersburg weathering today’s economy will soon receive a much-needed boost from Progress Energy Florida through the company’s innovative Neighborhood Energy Saver program. Through the free program, the company will give needy customers’ homes and apartments an energy makeover by installing up to 16 energy-saving improvements. The company will also educate customers about the behaviors and other factors that contribute to their energy bills.

“Progress Energy is committed to help our customers better understand and manage their energy use,” said Michael Lewis, senior vice president of energy delivery for Progress Energy Florida. “Through the Neighborhood Energy Saver program, we provide customers in need of assistance the tools to help reduce their energy bills, and the information to needed to sustain those positive changes over time.”

The Neighborhood Energy Saver program benefits low-income customers living in select, census-defined communities. St. Petersburg is the third city Progress Energy’s program has expanded to this year, and the twentieth community to participate since the program’s inception in 2006. In just four years, Progress Energy has installed more than 200,000 energy-efficiency improvements in more than 11,000 low-income customers’ homes.

The Progress Energy Neighborhood Energy Saver program kickoff will take place from 7 to 8:30 p.m. July 12 at The Wildwood Recreation Center, 1000 28th Street South in St. Petersburg. Eligible customers will learn about the program and the energy-efficiency improvements, that, when used in conjunction with energy-saving practices, can help homeowners save up to $150 a year in energy costs.

In partnership with the Florida Department of Community Affairs and the City of St. Petersburg, Progress Energy will install energy-efficient improvements in approximately 1,500 homes and apartments at no cost to homeowners. As part of the project, customers also will learn simple, effective ways to manage their energy use and the importance of energy efficiency to their pocketbook and the environment.

Progress Energy Neighborhood Energy Saver team members will install improvements beginning July 13, and will conclude by the end of the year.

Each participant will receive up to 16 energy-efficiency improvements at no cost, including:

water heater wraps and insulation for water pipes,

low-flow faucet aerator and low-flow showerhead,

refrigerator coil brush and refrigerator thermometer,

wall plate thermometer,

HVAC winterization kit,

water heater temperature check and adjustment,

HVAC filters and a filter-change calendar.

Progress Energy Florida also helps reduce energy loss through the installation of door sweeps, caulking, foam insulation, weather stripping and clear patch tape. In addition, the company provides up to five compact fluorescent light bulbs.

The St. Petersburg program targets homes and apartments in the following area:

North boundary: 34th Street South to 5th Avenue South to 28th Street S to 9th Avenue South to 22nd Street South to 5th Avenue South to 16th Street South

South boundary: 16th Street South to 18th Avenue South to 31st Street South

East boundary: 31st Street South to Fairfield Avenue Street – 34th Street South to 5th Avenue South

West boundary: 16th Avenue South from 5th Avenue South to 18th Avenue South

A flier showing the eligible area is available upon request.

Federal and state guidelines and census data are used to objectively select communities where the program would be most beneficial.

The Neighborhood Energy Saver program began as a pilot project in 2006, in St. Petersburg’s Palmetto Park community. The program was so successful, the company has conducted the outreach in 17 communities statewide, including Apopka, DeLand, Perry, Sebring, East Orlando, Clearwater, Haines City, Madison, Jasper, Trenton, Altamonte Springs, Avon Park and other St. Petersburg neighborhoods. The Southeastern Electric Exchange awarded the project the 2007 Industry Excellence Award in the Rates & Regulation category.

Since 1981, Progress Energy Florida has helped its customers have saved more than $1 billion by participating in its energy-efficiency programs – a savings that represents enough electricity conserved by customers to power more than 900,000 homes for a year. These programs have helped eliminate more than 8.3 million tons of CO2 (equal to removing more than 1.8 million cars off the road every year). Energy efficiency is critical to meeting our state’s long-term energy needs. It is the quickest, easiest and most environmentally-friendly way to reduce energy use. During the next decade, the utility anticipates these measures will avoid the need for an additional 1,500 MWs of new generation. For more information on energy efficiency tips that all homeowners can benefit from, visit www.savethewatts.com.

Progress Energy Florida, a subsidiary of Progress Energy (NYSE: PGN), provides electricity and related services to more than 1.6 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing more than 20,000 square miles, including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy Florida is pursuing a balanced approach to meeting the future energy needs of the region. That balance includes increased energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. For more information about Progress Energy, visit www.progress-energy.com.